S 3-Accounts and Records

ACCOUNTS & RECORDS
UNDER GST
Compiled by -
Mohd Faraz | Executive | Indirect Tax Vertical
Asija & Associates LLP | Chartered Accountants
gst@asija.in
Chapter VIII of CGST Act
Read with Accounts & Records Rules prescribed

1. What are the Records prescribed to be maintained for GST ?
2. Can the Accounts & Records be maintained electronically ?
3. Where Books of Accounts /Records have to be kept?
4. What is the period of which Records have to be retained ?
5. What is the requirement of Statutory Audit under GST law ?
6. What are the Specific Records prescribed for prescribed Businesses ?
7. Penal provision for non-maintenance of records.
8. Miscellaneous provisions.
gst@asija.inGST Wing | Asija & Associates LLP
TABLE OF CONTENT

Records to
be
Maintained
Production
of Goods
Inward &
Outward
Supplies
Stock of
Goods
Input
Tax
Credit
availed
Output
Tax
Payable &
paid
Specified
Registers
&
Document
s
1. RECORDS UNDER GST

WHAT ARE THE RECORDS PRESCRIBED UNDER GST LAW?
Every registered person shall keep and maintain true & correct Accounts of:-
1. Production or Manufacture of goods :-
Monthly Production Accounts showing quantitative details of:-
 Raw Materials or Service used in Manufacture
 Goods Manufactured
 Including Waste & By – Products.
2. Inward and Outward Supplies of Goods or Services or Both, including the following
 Goods or services Imported or Exported or
 Supplies attracting Payment of Tax on Reverse Charge

3. Stock of Goods received & supplied, containing particulars of:-
 Opening balance,
 Receipt,
 Supply,
 Goods lost, stolen, destroyed, written off, disposed as free samples / gift
 Closing balance of stock.
Note:
 Separate records should be maintained for raw material, finished goods, scrap &
wastage thereof.
 Stock should contain information HSN wise for the ease of preparation of GST
returns.

4. Input tax credit availed
5. Output tax payable and paid
6. Register of : -
 Tax invoice
 Delivery challans & E way bills
 Credit & debit notes
7. Other documents such as: -
 Tax invoices (inward & outward)
 Bills of supply
 Delivery challans & E way bills
 Credit & debit notes,
 Receipt, payment & refund vouchers

Can the accounts & records be maintained electronically?
Registered person has an option to keep its accounts, records & documents either in :-
 Electronic form or
 Manual form
2. ELECTRONIC RECORD KEEPING

 What are the special provisions for electronic record keeping ?
 It should be Authenticated by Digital Signature.
 Proper Backup should be there of records, so that in the event of destruction of the
records, it can be restored easily.
 On demand by appropriate authority, registered person shall provide
o The data file and password of such data files for access.
o Duly authenticated hard copy of any data stored in e-form.
 A log of every entry edited or deleted shall be required to be maintained.
2. ELECTRONIC RECORD KEEPING

 In case of maintenance of Books of Accounts manually, each volume of Books shall
be serially numbered.
 Any entry in the manual accounts
2. MANUALLY RECORD KEEPING
Thereafter
correct entry
shall be
recorded
All incorrect
Entries shall
be Scored
Out under
attestation
Shall not be
Erased,
Effaced or
Overwritten
What are the Special provisions for Manual Record keeping? ?

 It shall be kept and maintained at the Principal place of Business as mentioned in
the certificate of registration
 Where more than 1 place of business is specified in certificate of registration,
accounts relating to each place of business:-
 Shall be kept at each such place, if maintained manually, else.
 It shall be accessible at every related place of business where such Accounts and Documents
are maintained digitally.
 If any Document / Register or Books of Accounts is found at any place, other than
the place mentioned in the certificate of registration, that Books of Account shall
be deemed to be maintained by the said Registered Person.
3. PLACE OF RECORD KEEPING
Where Books of Accounts /Records have to be Kept & Maintained?

It shall be required to be retained for minimum period of
 6 years (72 months) from the due date of furnishing of Annual Return for the year
pertaining to such Accounts & Records
 If there is any case pending in any appeal or court then he shall retain his records for
o 1 year after the date of final disposal of such appeal or revision or
o The period specified above whichever is later.
4. PERIOD OF RECORD KEEPING
What is the minimum period of retaining Accounts and Records ?

Every registered Person having Turnover exceeding ₹ 2 Crores in
a Financial Year shall-
Get his Accounts Audited by a Chartered Accountant /Cost
Accountant and
Submit a copy of Audited Annual Accounts and Reconciliation
Statements in Form GSTR 9C electronically.
5. STATUTORY AUDIT UNDER GST
What is the requirement of Statutory Audit under GST Law ?

What are the specific records prescribed for Supply of Service ?
The Accounts showing quantitative details of goods used in the
provision of Services.
Details of Input Services utilised.
The Services supplied.
6. RECORDS (SUPPLY OF SERVICE)

 The names and addresses of the persons on whose behalf the works contract is
executed
 Description, value and quantity (wherever applicable) of goods or services
o Received for the execution of works contract
o Utilized in the execution of works contract
 The details of payment received in respect of each works contract
 The names and addresses of suppliers from whom he received goods or services.
What are the specific Records prescribed for Registered Person executing Works
Contract ?
6. RECORDS (WORKS CONTRACT)

Every agent referred to, shall maintain accounts depicting the:
a) Particulars of authorization received by him from each principal to receive or supply
goods or services on behalf of such principal separately
b) Particulars including description, value and quantity (wherever applicable) of
goods or services
i. Received on behalf of every principal
ii.Supplied on behalf of every principal
c) Details of accounts furnished to every principal
d) Tax paid on receipts or on supply of goods or services effected on behalf of every
principal.
What are the specific Records prescribed for Agent referred to Section 2(5) of
CGST Act ?
6. RECORDS (AGENT)

Any person engaged in the business of transporting goods shall maintain
 Records of goods
What are the specific Records prescribed for Transporters ?
Transported Delivered
Goods stored
in Transit by
him
6. RECORDS (TRANSPORTER)
 Along with GSTIN of the registered Consignor and Consignee for each of his branches.

Every owner or operator of a Warehouse or Godown shall
 Maintain books of accounts with respect to
o The period for which particular goods remain in the warehouse
o Including particulars relating to dispatch, movement, receipt, and disposal of
such goods.
 The owner or the operator of the Godown shall store the goods in such manner
o That they can be identified item wise and
o Owner wise and
o Shall facilitate any physical verification or inspection by the proper officer
What are the specific Records prescribed for Warehouse or Godown Owner or
Transporter ?
6. RECORDS (WAREHOUSE)

7. PENALTIES (SECTION-122 CGST ACT)
 Where a taxable person:
 Falsies or substitutes any financial records
 Produces fake accounts or furnishes any false information
 Fails to keep books of accounts in accordance with the stated provisions-
He shall be liable to pay a penalty of ₹10,000/-
 Any person who:
 Fails to account for an invoice in his books of accounts-
 Shall be liable to a penalty which may extend to ₹25,000/-

1. Every Registered Person shall keep the particulars of
a) Name & complete Address of
i. Suppliers from whom he has received the Taxable goods or service
ii. Suppliers to whom he has supplied the Taxable goods or service
b) Completed Address of the premises: -
i. Where Goods are stored by him
ii. Including Goods stored during transit
iii. Along with the Particulars of stock stored therein.
2. Every Registered Person shall keep and maintain a separate Account of Advances
Received, Paid and Adjustments made.
8. MISCELLANEOUS PROVISIONS

THANK YOU
FOR ANY QUERIES KINDLY CONTACT OUR GST TEAM :
CA Rahul Mishra
Partner
(rahul.mishra@asija.i
n)
CA Amber Agrawal
Associate Director
(amber.agrawal@asija
.in)
CA Prakhar Gupta
Associate Director
(prakhar.gupta@asija.
in)
ASIJA & ASSOCIATES LLP
CHARTERED ACCOUNTANTS
H.O. : 34/5 , GOKHALE MARG, LUCKNOW
PH. NO. : 0522-4004652,2205072
gst@asija.in

DISCLAIMER
This presentation has been prepared to provide a gist of the applicable law pertaining to GST as
issued till date. (09/07/2017)
For detailed insight and for better understanding of the various provision of the law, the said
presentation should be read along with related provision of CGST Act, IGST Act, SGST Act & related
rules.
We shall not be responsible for any decision taken on the basis of the said presentation, without
obtaining our professional guidance or consultation on the matter for which reliance was made on
this presentation.”

S 3-Accounts and Records

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